The Scottish Government's District Heating Loan Fund opened for the submission of 'expressions of interest' in May 2012. The loan fund aims to support the development of district heating networks in Scotland through the provision of capital loans.

District heating - a system for distributing heat generated in a centralised location for residential and commercial heating requirements – aims to improve efficiency and cut carbon emissions.

The loan fund is open to local authorities, registered social landlords, small and medium sized enterprises and energy services companies, for low carbon and/or renewable technologies, in order to help them implement district heating projects to benefit local communities. Individual householders are not eligible to participate.

Currently, only expressions of interest are being invited - full applications for participation in the loan fund will be available from the Energy Saving Trust in due course.

The expression of interest form details the key features of the loan, which are as follows:

• Loans of up to £400,000 per project are available to be repaid over a period of up to 10 years
• Low interest rate of 3.5% applies
• No security is required
• Loans will be made available following a competitive bidding process
• Capital loans may be offered for up to 100% of the total project costs (assuming the project costs are within the £400,000 threshold)
• Technical support may also be made available

If we can assist in identifying whether a development project can incorporate a district heating system, and how to then procure the construction, implementation and operation of the system, please get in touch.